United Gunn shares profits from copper mining projects

For the last couple of years, the company’s share of profits from Cuisson Lake’s earnings has been steadily increasing. Prevailing high copper prices and the addition of a heap leach process to maximize ore recovery will likely continue to increase the company’s revenues from the project this year.

Other shareholders of Cuisson are Placer Dome (TSE) with a 29% interest and Gibraltar Mines (TSE) with 41%. Cuisson holds claims covering part of the Granite Lake zone near McLeese Lake, B.C., being mined by Gibraltar. For the year ended April 30, 1989, United Gunn received dividend income of $810,000 from Cuisson, compared with $450,000 for 1987.

The company also has a 25% interest in a copper project north of Sacramento, Calif., which has been recommended for production. A feasibility study completed earlier this year by Wright Engineers recommended production from the company’s 1,403 acres of mineral rights in Nevada and Yuba counties, Calif. The property is known as the Western World copper project. United Gunn will contribute 25% of all costs to develop the property and receive 25% of all net proceeds.

One mining analyst’s report has indicated that United Gunn, along with operator Plexus Resources (TSE), can achieve a favorable payback over a 6-year mine life. Upon completion of mining activities, the company has the option to develop the property into a residential area.

At last report, the western world copper property had mineable reserves of 1.45 million tons grading 2.65% copper plus gold-silver values in two shallow lenses. Capital costs for an open pit operation are estimated at $7.5 million(US).

Shares of United Gunn have risen about 34 cents recently to close at $1.15 on The Vancouver Stock Exchange. The company has nearly 3.8 million shares issued and outstanding.

]]>